Averaging is the only way to make money consistently in Forex

Beginner Questions
1

Look at market structure…there is always up and down…just pick major pair like EURUSD and use 0.05 lots per $1000 for 1 entry…last week EU down to 1.1610…now it’s at 1.1745, so even if you have buy at 1.1800 you can accumulate the profit.

It’s so hard to be consistent trading using SL… Averaging + good money management is the way to make profit

2

What do you mean by averaging? You mean when setting up your position size? How does that make you money? Seem more involved than that.

Do you have an example?

3

I think he is using the wrong word. I am sure he means compounding.

4

Averaging could be fatal if the market starts trending (which it does at one point). It requires a lot of expertise to average down or up. A trader focus on increasing winning percentage and risk reward ratio.

5

need more information on what youre trying to do

6

Okay that would make a bit more sense.

7

Yes you make money every week, than at some point you are in the wrong direction and you blow the account.
Always happens with grids and martingales.

8

Averaging might not be a great idea and could be destructive when the market goes up. A lot depends upon the expertise to observe and ‘average’ up or down. This could turn out to be very risky. Be careful.

9

What you say is true - most traders focus on win rate and r:r. But surely, doing what most traders do will just lead to the same outcome as most traders - a loss?

10

I would never trade without stop loss. Best is to keep moving your SL limit.

11

I don’t think one strategy will work for all.

12

I don’t understand why it is so difficult to make profits consistently. It’s been more than a year since I started trading Forex. But I still can’t judge how the market will react. Am I lacking in something?

13

Profit is hard to achieve: consistency is even harder to achieve: maintaining consistency is the ultimate challenge.

Of course I can’t see what you’re doing but some tentative thoughts from your short message. See if these apply -

  • you start with the assumption your lack of success is down to something lacking in you: spend more time examining what you’re doing right
  • avoid approaches that require you to judge and more that require you to see - just follow price
  • don’t try to predict how the market will react, just know for sure how you will react after the market shows what it has done
14

It is okay if you keep making an almost consistent amount of profits. This will ensure stability.